Dealer selling at his Invoice Cost?

[MojaveJoe]

Let's talk timing your offer.............

There must be certain key times during the year/month/week that a dealer is more likely to take your low ball offer to make a quota or get more dealer kick back from FCA. So when is that?
Im having so much trouble finding a used 3500 LB SRW QC 4x4 Auto in white I am now considering just custom ordering and getting most of the options I want, instead. Long bed is usually the hardest part to find. Plenty of used dually long beds and SRW short bed trucks for sale, but not a good choice for my needs.
New will certainly be more than used, but Ive seen quite a few used truck close matches that are about the same price as a great New deal. May as well buy new.

My last test drive was a 2012 LB 4x4, with 107,000 miles, a fleet management company on title record, and 4:10 rear diff. Above the rear wheel was a visible B&W Turnover ball hitch hardware bolted to the frame, but there were no holes thru the bed floor.(?) I think someone put a new bed on that truck, thus the reason for B&W parts? Anyway the dealer grudgingly took 1000 off the price and offered it to me for $44,995, after I offered him 40,000. But those 3 negatives made me nervous, so I walked, even tho I truly liked the truck and was getting real tired of shopping. Thanks to you guys I had enough confidence to walk, then, but even more so now.

Thanks for all the great ammo for Truck Hunting

P.S. Regarding timing an offer, does a new truck dealer get credit for a new sale the day the contract is signed or the day of delivery? How long is a new truck build these days?

 

[tommyturbo]

rrl989. Those buzz words, "Supplier" and "Affiliate" caught my attention. Sounds like an easier way to look for discounts other than my hard drive
haggle approach, which I'm sure is not for everybody. A predetermined pricing program with decent enough discounts should be a comfortable
experience for the dealer and customer. I will look into it if ever my '08 finally quits.
Thanks for your input.
Tom

 

[RustyJC]

To throw even more confusion into the pricing mix, there's the X-plan (Ford's term, I think) discount program. The previous owner of our division used Ford vehicles exclusively in its fleet, and employees were eligible for X-plan pricing through our employer's benefit program. Where that fits with respect to invoice pricing I have no idea as I had no interest in purchasing a Ford. Many larger employers offer the same benefit, however, so it might be worth checking out. I don't know if FCA has something similar, but I expect they might.

Rusty

 

[Ram4Sam]

Let's talk timing your offer.............

There must be certain key times during the year/month/week that a dealer is more likely to take your low ball offer to make a quota or get more dealer kick back from FCA. So when is that?
Im having so much trouble finding a used 3500 LB SRW QC 4x4 Auto in white I am now considering just custom ordering and getting most of the options I want, instead. Long bed is usually the hardest part to find. Plenty of used dually long beds and SRW short bed trucks for sale, but not a good choice for my needs.
New will certainly be more than used, but Ive seen quite a few used truck close matches that are about the same price as a great New deal. May as well buy new.

My last test drive was a 2012 LB 4x4, with 107,000 miles, a fleet management company on title record, and 4:10 rear diff. Above the rear wheel was a visible B&W Turnover ball hitch hardware bolted to the frame, but there were no holes thru the bed floor.(?) I think someone put a new bed on that truck, thus the reason for B&W parts? Anyway the dealer grudgingly took 1000 off the price and offered it to me for $44,995, after I offered him 40,000. But those 3 negatives made me nervous, so I walked, even tho I truly liked the truck and was getting real tired of shopping. Thanks to you guys I had enough confidence to walk, then, but even more so now.

Thanks for all the great ammo for Truck Hunting

P.S. Regarding timing an offer, does a new truck dealer get credit for a new sale the day the contract is signed or the day of delivery? How long is a new truck build these days?

Mine 2016 took six weeks from the order date to arriving at the rail yard in Mira Loma...... but it has been sitting there for a week and hasn't been delivered to the dealer.....:{:{ My 2014 sounds like just what you are looking for, but has been a problem child........

Sam

 

[Jeff Knight]

Back before it was FCA it was known as the Friends & Family plan. Don't know if it is still called that.

 

[Cummins12V98]

Back before it was FCA it was known as the Friends & Family plan. Don't know if it is still called that.

Still is called Friends and family. I was given that discount on mine and my Son's 15's we ordered from a Chrysler rep at MayMadness.

 

[Jones2014]

I moved to Boise six years ago and Last year purchased a new 2014 Laramie crew short bed 4X4 Cummins . A truly fantastic truck IMHO I worked 35 years at a Chevy dealer so this is my first non GM truck in 50 years of driveing. The Ram is hands down way superior to the new Duramax and even way way superior to the Powerstroke. No question in my mind even with the current recalls . I am an insider and am extremely frailer with factory to dealer pricing. The basic price structure stay pretty mich the same year to year . MSRP, ( The list Price } then dealer invoice , holdback (usually 3 % ) , advertising , can vary from region to region and is partially a dealer decision as to whether he wants to participate in an add co op . The percent discount the dealer pays for the vehicle( Invoice) is the same for all dealers but the trend historically year after year is to see that discount be eroded year after year. Year ago there might be over ten percent MSRP to invoice nowadays less . There are three large Ram dealers here in Boise, Dennis Dillon in Caldwell, Larry Miller in Boise, and Peterson in Nampa . They all stock a ton of HD Ram Cummins trucks . Hundreds at each dealer . They compete for sales like three pit bulls in a cage . I went shopping for my truck and actually found the best deal at Dennis Dillon but they did not have the exact truck I wanted . I bought mine at Larry Miller . I bought mine with an MSRP of 61060 for 49653 plus tax and lic . Over 11 grand discount and it was a fresh unit only on the ground 2 weeks . There was an old unit they had I could have gotten another grand off of but it had a couple of options missing and was not the color I wanted . What I found out from the GSM at the store after I got to know him pretty well and he realized I was also in the business was they were near the end of a multi month factory contest that is not made know to the piblic or the media that sets a contest goal for truck sales based on the dealerships past sales potential and actual sales that gives them a huge carrot to move the metal . We had these types of dealer contests when I was a General Manager and I remember one where if we sold 300 trucks in three months we got two grand per truck or 600 K . That kind of money gets a dealers attention . What it also does is as you get close to your goal , say your at 280 trucks with one week to go you will loose money on those last 20 trucks to win that contest . It gets very exciting toward the end as you can afford to loose 2 grand each on those last 20 trucks to make 600 grand because if you miss by one truck that one truck just cost you 600 large. You do not want to be the sales manage in charge if that happens .

 

[sag2]

You do not want to be the sales manage in charge if that happens .

No problem, they just fire you and get one that knows how to get the deals done. I have seen a few times where the sales did not get reported on time (the cut off is 9 PM west coast time) and it is not pretty. Especially when you actually sold the correct number of units to win and the office didn't get them input.

 

[Jwskj]

I just finished going through the same process that you are asking about when I ordered my 2016.
I did some preliminary research on the Ram build website, and checked on-line to find dealer invoice pricing before I talked to a dealer.
I started with 3 different dealers that I wanted to compare offers with, and here's what I did:

1-The first dealer I talked to was the dealer that sold me my 2011, and I asked for a price on a new 2500 that I optioned-out the way I wanted. I purchased my 2011 Longhorn from him because he was local and gave me the best price at the time. I paid $600 below factory invoice using the Costco buyer's program, but the dealership is no longer participating in the Costco program, and he knew he couldn't be competitive, so he only offered a cost at factory invoice.
2-The second dealer I talked to was Dave Smith Motors, and was offered $500 below factory invoice because I had previously purchased a vehicle from them, but no further discounts.
3-The third dealer was Earnhardt Dodge in Phoenix, AZ, because it was the dealer that wasparticipating in the Costco automobile program in my general area. Once I gave the sales rep the details on the truck with all of the options as I wanted it, he called me back with a no hassle-first and only offer of $975 below factory invoice. That's $975 out of the dealer's holdback! I was all set to pull the trigger, when...
4-One day while on a long drive vacation, visiting family and not having anything better to do than think about the new truck I would be ordering when I returned home, I was driving around killing the afternoon one day and just happened to pass buy a Ram dealer...and the steering wheel just turned by itself into his lot. I wandered around for a while looking at inventory and then the inevitable run-in with a salesman occurred. When he asked if I was looking at anything particular, we had to sit down and I gave him the details of my ideal truck with all of the options specified as I had done with other dealers. I figured that the whole event was just a waste of time, but since I didn't have anything better to do, I thought "what the heck?" Anyway, once he had my specifications, he went to talk to somebody to get a price for me, and 10 minutes later he came back and showed me a computer-printed build sheet showing both MSRP and factory invoice for my truck. At the bottom was my cost, hand-written, and it took a couple of minutes for me to register what I was seeing. I had never seen such a discount off of factory invoice for any ordered vehicle...let alone a brand new model year model. His price was low enough for me to pay for fuel, motels, & meals for a second trip back to pick it up when it finally arrived...below the Phoenix cost. I had to finally ask if the price they wrote down was correct or if they made a mistake. They confirmed it, and that night I let it sink in. The next day went back to the dealer and placed the order. As of right now, the vehicle has been completed and is in transit to the dealer. Hopefully I will get a call in the next week telling me to come and get it.

The only thing I can recommend is to first go through the Costco or Sam's Club buyer's program and make the phone call. It's well worth your time to do that. Beyond that, take the time to talk to a couple of other larger dealers around the area. I don't know if timing has any affect on the deal you get...I've heard it does, but I signed the papers mid-month and I can't believe I could have done any better!

Good luck!

 

[MojaveJoe]

Now that is a story I like Jwskj. Inspiring to say the least. You must have been carrying your lucky rabbits foot in your pocket that day. :-laf

You never mentioned anything about Ram incentive $. Ive often wondered why those invoice price dealers don't sell below invoice using that incentive $2000-3000 from the mfr to make a deal even sweeter, by taking it from you. But it seems obvious if you only sell a few dozen new trucks a month the profit margin certainly needs to be high enough to pay the dealer's overhead. I would gladly give any dealer all those incentive dollars just to get an invoice price deal, but sadly those dealers are far and few between.

Right now Im looking for an exact replacement truck and only found 1 within 500 miles of me, but the dealer wants $31K for it. Sounds way high but the KBB high book is right about there, for a 60,000 mile loaded Laramie like I had. Even so, if I bought it I would be about $30K ahead of buying a similar new truck, plus all my accessory stuff, fiver hitch, trailer brake controller, TPMS, in bed rack, and top bed rack Ive built for my old truck will be a direct fit, no hassles trying to adapt to a newer body/build style etc. Plus at 60K I shouldn't need to spend much on any major repairs to it for about 5 years, thus using those repair costs on a lesser 2004 truck to make up some $10K of the price for this low mile cream puff Laramie Im eyeing. Having a local vehicle inspector check it out for me before I make an offer. 300 miles away and if the dealer accepts my offer I will fly in and drive it home, same day.

Buying new would be sweet, and just yesterday a new dealer truck pulled up along side of me at an intersection, and I almost started drulling it was so purdy. I really gave buying new a second and third thought

But at 67 years Im an ol' fella that just wants to get back where I was before my accident, and not waste a bunch of time/money upgrading a new truck to get back where I was 2 months ago.

Thanks loads for your input. I will certainly now give Costco's program a second look if I decide to buy new. Enjoy that new Ram.

 

[SnoKing]

mojaveJoe, one of the nice things about the new trucks is that you just get in them and drive them. No need to start adding gauges and other things we did in the past.

Here are a couple good deals on left over 2015's. SNOKING

http://www.johnelwaychryslerjeepdod...racted=inventory-listing1-facet-anchor-trim-1

 

[Alphonse]

For a reference cost number, check out Kernerville Dodge's website in Kernerville, North Carolina. They are one of the largest retailers in the US and their prices on the web reflect current incentives, etc. They put the actual sales price on their website. You click "get the ePrice" and someone calls immediately and gives you a whopping $100 more for your contact info. Point is that the price you see is real.

If you want an accurate invoice cost, go to Costco's auto buying program website and put in the specifics and it will give you the invoice. As others have said already, invoice is far from their actual price. You will see that from the prices on the Kernerville website. They are rolling the inventory over in a matter of days and likely working on FCA's floorplan.

By the way, they will reimburse you $500 on airfare to come pick one up which I did. The young man that picked me up at 3:00 in the afternoon at the airport, said he had picked 8 customers that day! They also will deliver them free within a certain radius. Their sales volume is unbelievable. They had 200 2016's when the local market near me had less than 5 in a 60 mile radius. They evidently get the first shipments and had them stored all over the Greensboro area.

I recognize that you are in California so this is for reference only to give you an idea what one can be acquired for if you use the internet. Markups, hold backs, & dealer incentives are way bigger than I thought.

Good luck on landing your truck.

 

[TJJEEPER]

For a starting point go to http://www,edmunds.com for a new truck. Of course if you're going the used route you can use BOTH of these http://www.kbb.com or http://www.nada.com. Go to both of them! They usually aren't the same so the price should be somewhere close. On used you can see the profit margin they're using (trade -in or wholesale vs retail).

LOTS of info on Edmunds!!!

 

[Oakwood]

photoawrite:
Did you pay for the shipping to NV? If so, who did you use? Did you try to get the dealer to ship it free?
Looking at 2016 Ram 2500 to replace my '03. The new one has been sitting for 120+ days.
Thanks in advance.

 

[MojaveJoe]

Well Guys...UPDATE

Ended up buying a 2004.5 with 133K and 3300hrs on it. Drove 200 miles solo to pick it up. Dealer put a complete set of new rotors and pads on it, and serviced the engine and trans for free. Dealer was gonna put on a set of stock street tires, so I bargained with him for $600 off the price and had my preferred BFG TA KO2s put on instead, while I paid the other $650. Drove it home trailer-ing my Toyota pu. New tires, new brakes, freshly serviced engine. Got a couple minor problems to sort out with the shift and throttle cables, but couldn't be happier with my purchase.

Surprised how much more power/torque the 325/600 has over my former 305/555. But most importantly, I can use all the maintenance stuff I had stockpiled for the former truck, I know how to prep this truck for all my aftermarket towing mods etc, and every accessory I bought for my former truck fits this truck exactly. So whats to complain about?

Paid $21,400 less tax & Regis, but that's $11K less than the 2004 Laramie I had put so much effort into buying, before it was bought out from under me by 1 day. Glad it did to. I needed that extra $11K.

Thanks for all your advice and help. It educated me thoroughly about resources to scour while truck buying. Coolest part was no salesman I ran into during this process was as well informed as I was on the truck or the process. They were virtually at my mercy every time I had doubts about their truck or price. I walked away several times, and got the old last ditch final sales pitch to save the deal every time, but non of them could make it happen, until I found the truck I wanted at the right price.

Happy Holidays to all of ya'
Joe

 

[Bill]

I was looking for a used 2014 Chrysler 200 for the wife last November. I was shopping in Lexington, KY. Drove the car, liked the car, set down with salesman to run the numbers.....an outright purchase with no trade-in. Seems as if the price jumped about $1100 more....$699.00 prep fee and $399.00 document fee.

"Prep fee" on a used car??? :-laf I simply walked out.....

Prep fees may include putting 4 new tires on a vehicle, having a mechanic check things out - doing a LOF etc. but for the most part it's having lot boys doing a quick detail on it.

 

[gsbrockman]

Prep fees may include putting 4 new tires on a vehicle, having a mechanic check things out - doing a LOF etc. but for the most part it's having lot boys doing a quick detail on it.

Upon asking them for a completed prep sheet....they were unable to provide me with one. I'd say an oil change, maybe an air filter, and a wash job would have been pushing it. :-laf

 

[Bill]

I'm no expert or will claim to be. I have bought 4 vehicles from the same salesman in the last 12 months, and now we talk. I straight out asked him how much money did he make off me. His reply was $100 off the jeep I just bought and a flat rate of $1000 off the Hellcat Charger I ordered and waited 8 months for. I told him it doesn't sound like a lot but for only having a couple hours in face to face, and writing emails/ answering the phone it isn't bad money. He said no if there was 10 guys like me every week. What I have done and do now is shop via the web and take the best found price to my local dealer and ask them to match. Dave Smith out west, Big O in SC and Dave Smith in NC are my favorite places to contact.

I sold cars back in the 80's until the recession hit. I could not stand playing the back and forth game, especially with elderly couples. When it got so bad I couldn't sleep, I simply quit. I learned one lesson from those days that I still use today when I buy new. With my trade-in, knowing the price I want for that, what I will pay for the new vehicle and my payments, I take charge of the salesman, not him in charge. Just leave me alone while "I" look for the right vehicle. Then test drive. Walk back inside and tell the salesman this. "You tell your sales manager he only has one chance to make this deal or I walk. ". I give them no figures. If the salesman comes back with some off the wall figures, I get up and walk out the door. Then, here comes the salesman, sales manager AND the finance mgr. I then hand them the figures I came up with. Drive home and wait for the phone to ring which it always happens. 8 out of 10 times I return to the dealership and make the deal. I may have to cough up a couple "hundred" more but it's better than thousands dollars more.

 

[Bill]

Upon asking them for a completed prep sheet....they were unable to provide me with one. I'd say an oil change, maybe an air filter, and a wash job would have been pushing it. :-laf

Ya, gotta agree with that.